New build in Vegas
Member since 2021 · 27 posts · 6 votes
New build in Vegas
Most Popular Reply
Eric FernwoodBusiness Member
Realtor · Las Vegas, NV · Member since 2014 · 997 posts · 1k+ votesHello @Lawrence Ng,
A low interest rate does not guarantee a good investment. For example, if a property attracts tenants who stay only one or two years, or if it takes a long time to rent, you will lose money. (Based on our experience dealing with builders in Vegas, a low promotional rate rarely lasts 30 years.) Add a $300/month HOA, and the losses can add up quickly.
Other considerations
New construction has additional drawbacks. Property taxes are typically higher—around 1% versus about 0.55% average for the properties we target. On a $400,000 property, that’s an extra $1,800 per year, or $150 per month more in property taxes, permanently. Future tax increases also start from this higher base.
Many of our properties are in HOAs, and the average fee is about $50 per month. Compared to a $300 HOA, that's an extra $250 per month in costs.
Now compare that to the mortgage payment difference on a $400,000 property with 25% down and a 30-year loan:
- 3.99% interest: about $1,430/month
- 6.25% interest: about $1,847/month
- Difference: $416/month
That lower mortgage payment is largely offset by:
- Higher property taxes: $150/month
- Higher HOA fees: $250/month
You also mentioned that the HOA covers water, sewer, trash, internet, and landscaping. On our properties, tenants pay all utilities and handle landscaping, so there's no financial advantage to you paying these expenses.
Finally, townhomes typically have shorter tenant stays, which leads to higher vacancy and turnover costs. You will need to factor that in.
FERNWOOD Team, KW VIP Realty520 Reviews
9 Replies
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes9mo
Quote from @Lawrence Ng:
Hi does anyone know of a builder in Vegas?
I saw an ad for touchstone living offering 3.99 fixed interest for a new build town house. The deal seems pretty good with that interest rate. Only thing is owner occupancy for first year and $300/month HOA(water, garbage, sewer, 1gb internet, landscaping) so I think HOA is worth it. Does anyone have any insight on them? Also if you can recommend any new builders offering this fixed rate and covers closing costsGo look at the homes and speak to agents in the area as well, there will be plenty of reviews online for new builders. I would not get enticed by teaser rates as I would bet that 3.99 rate is not permanent.
7e investments53 Reviews - 9moEric FernwoodBusiness MemberRealtor · Las Vegas, NV · Member since 2014 · 997 posts · 1k+ votes
Hello @Lawrence Ng,
A low interest rate does not guarantee a good investment. For example, if a property attracts tenants who stay only one or two years, or if it takes a long time to rent, you will lose money. (Based on our experience dealing with builders in Vegas, a low promotional rate rarely lasts 30 years.) Add a $300/month HOA, and the losses can add up quickly.
Other considerations
New construction has additional drawbacks. Property taxes are typically higher—around 1% versus about 0.55% average for the properties we target. On a $400,000 property, that’s an extra $1,800 per year, or $150 per month more in property taxes, permanently. Future tax increases also start from this higher base.
Many of our properties are in HOAs, and the average fee is about $50 per month. Compared to a $300 HOA, that's an extra $250 per month in costs.
Now compare that to the mortgage payment difference on a $400,000 property with 25% down and a 30-year loan:
- 3.99% interest: about $1,430/month
- 6.25% interest: about $1,847/month
- Difference: $416/month
That lower mortgage payment is largely offset by:
- Higher property taxes: $150/month
- Higher HOA fees: $250/month
You also mentioned that the HOA covers water, sewer, trash, internet, and landscaping. On our properties, tenants pay all utilities and handle landscaping, so there's no financial advantage to you paying these expenses.
Finally, townhomes typically have shorter tenant stays, which leads to higher vacancy and turnover costs. You will need to factor that in.
FERNWOOD Team, KW VIP Realty520 Reviews - Member since 2021 · 27 posts · 6 votes9mo
thanks for the insight @Eric Fernwood
i was enticed due to the 3.99% mortgage rate and lower cost of the townhome on these promotions because I recently bought a new build in enterprise at 7.125% and am taking a ~1k loss at the moment renting out to my tenants.
i'm still new to the real estate investing and trying to expand my real estate portfolio, so I was thinking about buying another new build since those are ready to rent ASAP. - Rental Property Investor · San Francisco Bay Area · Member since 2022 · 1k+ posts · 1k+ votes9mo
I looked in the Vegas area with some of my California investor friends. I don't know anything about Touchstone. I looked at new builds in Summerlin with KB Homes. Their HOAs were less, $60/month and a semi-annual HOA $340 (access to community amenities) - this was in September 2025. They didn't offer any rate close to 3.99% - it was close to the current rates. I was also pitched that new builds are better because there would be no capital expenses for a while (provided the builder did a good job).
For the exact reasons Eric mentioned, I'm rethinking new builds because of the higher property tax issue. If it were me I would go for single family home over a townhome, better appreciation. To me the $300/month sounds a bit high and if it keeps going up that doesn't sound good.
The other areas considered were Henderson - my agent said I could possibly break on a long term rental (with 20% to 25% down) if I self manage. I was also informed that for mid-term rentals clients are looking for higher end properties with pools, $800k or more range (which is too high purchase price for me). I'm guessing you live in the Vegas area so it's probably a lot easier for you to look at properties and you know the area better than I do. I've only taken one trip out there.
As far as your property in Enterprise, can you do rent by the room to increase rental income, although there would be more tenant dynamics to deal with?
- Member since 2021 · 27 posts · 6 votes9moI am also from sf bay area. I could rent by room, but that is more involved in finding tenants. Which parts of henderson were you looking at to break even for long term rental? I don't mind a bit of loss right now. My current plan is to pay off mortgage + interest as soon as possible by adding extra principle. I prefer long term over medium/short for less involvement and more stability.
Quote from @Becca F.:
I looked in the Vegas area with some of my California investor friends. I don't know anything about Touchstone. I looked at new builds in Summerlin with KB Homes. Their HOAs were less, $60/month and a semi-annual HOA $340 (access to community amenities) - this was in September 2025. They didn't offer any rate close to 3.99% - it was close to the current rates. I was also pitched that new builds are better because there would be no capital expenses for a while (provided the builder did a good job).
For the exact reasons Eric mentioned, I'm rethinking new builds because of the higher property tax issue. If it were me I would go for single family home over a townhome, better appreciation. To me the $300/month sounds a bit high and if it keeps going up that doesn't sound good.
The other areas considered were Henderson - my agent said I could possibly break on a long term rental (with 20% to 25% down) if I self manage. I was also informed that for mid-term rentals clients are looking for higher end properties with pools, $800k or more range (which is too high purchase price for me). I'm guessing you live in the Vegas area so it's probably a lot easier for you to look at properties and you know the area better than I do. I've only taken one trip out there.
As far as your property in Enterprise, can you do rent by the room to increase rental income, although there would be more tenant dynamics to deal with?
- Rental Property Investor · San Francisco Bay Area · Member since 2022 · 1k+ posts · 1k+ votes9mo
Quote from @Lawrence Ng:
I am also from sf bay area. I could rent by room, but that is more involved in finding tenants. Which parts of henderson were you looking at to break even for long term rental? I don't mind a bit of loss right now. My current plan is to pay off mortgage + interest as soon as possible by adding extra principle. I prefer long term over medium/short for less involvement and more stability.Quote from @Becca F.:
I looked in the Vegas area with some of my California investor friends. I don't know anything about Touchstone. I looked at new builds in Summerlin with KB Homes. Their HOAs were less, $60/month and a semi-annual HOA $340 (access to community amenities) - this was in September 2025. They didn't offer any rate close to 3.99% - it was close to the current rates. I was also pitched that new builds are better because there would be no capital expenses for a while (provided the builder did a good job).
For the exact reasons Eric mentioned, I'm rethinking new builds because of the higher property tax issue. If it were me I would go for single family home over a townhome, better appreciation. To me the $300/month sounds a bit high and if it keeps going up that doesn't sound good.
The other areas considered were Henderson - my agent said I could possibly break on a long term rental (with 20% to 25% down) if I self manage. I was also informed that for mid-term rentals clients are looking for higher end properties with pools, $800k or more range (which is too high purchase price for me). I'm guessing you live in the Vegas area so it's probably a lot easier for you to look at properties and you know the area better than I do. I've only taken one trip out there.
As far as your property in Enterprise, can you do rent by the room to increase rental income, although there would be more tenant dynamics to deal with?
We only looked in the southwest part of Vegas and Summerlin. It was a short trip so there wasn't time to look in Henderson. Looking at my notes, good builders are KB Homes, Pulte, Toll Brothers and Tri Point (the last two don't allow investors to buy, I was told)
Another consideration is Reno which I looked at once too. Interestingly most of my Bay Area friends love Vegas but I'm the only one who's brought up Reno.
I can ask the agent about Henderson and DM you more information.
- Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes9mo
Check the location on those new construction townhouses too. Some builders are doing infill development which is great for that area, but you'd want to check the rental rates to see if they will support your investment.
- Rental Property Investor · San Francisco Bay Area · Member since 2022 · 1k+ posts · 1k+ votes9mo
I'm not sure if you still on BP but I sent you two DMs, one with the agent I looked at homes with. She is highly recommended by my other investor friends who bought in Vegas.
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